8-K
false 0001437352 0001437352 2019-11-04 2019-11-04

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 4, 2019

 

Everbridge, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware

 

001-37874

 

26-2919312

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

25 Corporate Drive, Suite 400, Burlington, Massachusetts

 

01803

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code: (818) 230-9700

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading
Symbol(s)

 

Name of each exchange
on which registered

Common Stock, $0.001 par value

 

EVBG

 

The Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 

 


Item 2.02 Results of Operations and Financial Condition.

On November 4, 2019, Everbridge, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2019. The Company’s press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information included in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Item 7.01 Regulation FD Disclosure.

On November 4, 2019, the Company issued a press release announcing its financial results for the quarter ended September 30, 2019.

The information included in Item 7.01 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit
No.

   

Description

         
 

99.1

   

Press release dated November 4, 2019

         
 

104

   

Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Everbridge, Inc.

         

Dated: November 4, 2019

 

By:

 

/s/ Elliot J. Mark

 

 

Elliot J. Mark

 

 

Senior Vice President, General Counsel and Secretary

EX-99.1

Exhibit 99.1

Everbridge Announces Third Quarter 2019 Financial Results

Third Quarter Revenue Increased 35% Year-over-Year

Burlington, Mass – November 4, 2019Everbridge, Inc. (NASDAQ: EVBG), the leader in critical event management (CEM), today announced its financial results for the third quarter ended September 30, 2019.

“We exceeded our revenue and profitability guidance while also delivering an impressive list of achievements in the third quarter,” said David Meredith, Chief Executive Officer of Everbridge. “During the quarter, we closed the largest state deal in our history, our largest IT alerting win, and signed a record number of new Critical Event Management customers, including our first Federal government CEM customer, while also scaling our business internationally. We benefited from the power of partnerships in several transactions to complement our direct sales efforts and expect to further leverage channel relationships to extend our sales reach as we look forward.”

Third Quarter 2019 Financial Highlights

 

   

Total revenue was $52.5 million, an increase of 35% compared to $38.9 million for the third quarter of 2018.

 

   

GAAP operating loss was $(12.1) million, compared to a GAAP operating loss of $(7.2) million for the third quarter of 2018.

 

   

Non-GAAP operating loss was $(0.7) million, compared to non-GAAP operating loss of $(1.8) million for the third quarter of 2018. Non-GAAP operating loss excludes stock-based compensation and amortization of intangible assets related to acquisitions.

 

   

GAAP net loss was $(12.9) million, compared to $(8.5) million for the third quarter of 2018. GAAP net loss per share was $(0.39), based on 33.5 million basic and diluted weighted average common shares outstanding, compared to $(0.29) for the third quarter of 2018, based on 29.5 million basic and diluted weighted average common shares outstanding.

 

   

Non-GAAP net loss was $(1.5) million, compared to $(3.1) million in the third quarter of 2018. Non-GAAP net loss per share was $(0.04), based on 33.5 million basic and diluted weighted average common shares outstanding, compared to $(0.10) for the third quarter of 2018, based on 29.5 million basic and diluted weighted average common shares outstanding. Non-GAAP net loss excludes stock-based compensation and amortization of intangible assets related to acquisitions.

 

   

Adjusted EBITDA was $1.6 million, compared to $0.2 million in the third quarter of 2018. Adjusted EBITDA represents net loss before interest income and interest expense, income tax expense and benefit, depreciation and amortization expense and stock-based compensation expense.

 

   

Cash flow from operations was an inflow of $12.3 million compared to an inflow of $0.7 million for the third quarter of 2018.

 

   

Free cash flow was an inflow of $9.9 million compared to an outflow of $(2.4) million for the third quarter of 2018. Free cash flow is cash flow from operations, less cash used for capital expenditures and additions to capitalized software development costs.


Recent Business Highlights

 

   

Ended the quarter with 4,851 global enterprise customers, up from 4,267 at the end of the third quarter of 2018.

 

   

Completed the acquisition of NC4, a leading global provider of threat intelligence solutions, creating the industry’s only end-to-end critical event management and threat assessment platform to keep people safe and business operations running.

 

   

Awarded a five-year contract with the State of California to provide an alert and warning system as part of an overall upgrade of the state’s current 9-1-1 system to a new Next Generation 911 emergency alerting platform in partnership with Atos Public Safety LLC and a team of network service providers.

 

   

Selected as the winning bidder for a significant new countrywide population alerting system by a country outside of Europe, adding to recent countrywide wins in Australia and Singapore.

 

   

Completed deployment of Iceland’s national alerting system to become the first population alerting provider to support four European countries: Greece, Iceland, the Netherlands and Sweden.

 

   

Launched Critical Event Management for Supply Chain, combining Everbridge’s risk intelligence, visualization and alerting capabilities to assess supply chain risk events and mitigate or eliminate their potential impact.

 

   

Announced the large-scale deployment of its Mass Notification product as part of a major overhaul of the City of Los Angeles’ NotifyLA emergency alert program, including the addition of a more robust Wireless Emergency Alerts capability.

 

   

Announced a partnership with RiskBand, a leading provider of wearable, live-monitored safety devices for organizations and their workers, who may not always have ready access to a mobile phone.

 

   

Welcomed Vernon Irvin to the company as Chief Revenue Officer. In this role, Irvin leads the global sales and field services organization.


Business Outlook

Based on information available as of today, Everbridge is issuing guidance for the fourth quarter and full year 2019 as indicated below.

 

     Fourth Quarter 2019      Full Year 2019  

Total Revenue

   $ 56.1        to      $ 56.4      $ 199.9        to      $ 200.2  

GAAP net income/(loss)

   $ (15.9       $ (15.6    $ (55.0       $ (54.7

GAAP net income/(loss) per share

   $ (0.47       $ (0.46    $ (1.67       $ (1.66

Non-GAAP net income/(loss)

   $ 1.3         $ 1.6      $ (7.3       $ (7.0

Non-GAAP net income/(loss) per share

   $ 0.04         $ 0.05      $ (0.22       $ (0.21

Basic and diluted weighted average shares outstanding

     34.0           34.0        33.0           33.0  

Adjusted EBITDA

   $ 4.9         $ 5.2      $ 5.0         $ 5.3  

(All figures in millions, except per share data)

Conference Call Information

 

What:    Everbridge Third Quarter 2019 Financial Results Conference Call
When:    Monday, November 4, 2019
Time:    4:30 p.m. ET
Live Call:    (866) 439-5043, domestic
   (409) 220-9843, international
Replay:    (855) 859-2056, passcode 8149677, domestic
   (404) 537-3406, passcode 8149677, international
Webcast (live & replay):    http://ir.everbridge.com

About Everbridge, Inc.

Everbridge, Inc. (NASDAQ: EVBG) is a global software company that provides enterprise software applications that automate and accelerate organizations’ operational response to critical events in order to keep people safe and businesses running. During public safety threats such as active shooter situations, terrorist attacks or severe weather conditions, as well as critical business events such as IT outages, cyber-attacks or other incidents such as product recalls or supply-chain interruptions, more than 4,800 global customers rely on the company’s Critical Event Management Platform to quickly and reliably aggregate and assess threat data, locate people at risk and responders able to assist, automate the execution of pre-defined communications processes through the secure delivery to over 100 different communication devices, and track progress on executing response plans. The company’s platform sent over 2.8 billion messages in 2018, and offers the ability to reach 500 million people in more than 200 countries and territories including the entire mobile populations on a country-wide scale in Australia, Sweden, the Netherlands, Singapore, Greece, and a number of the largest states in India. The company’s critical communications and enterprise safety applications include Mass Notification, Incident Management, Safety Connection, IT Alerting, Visual Command Center®, Public Warning, Crisis Management, Community Engagement and Secure Messaging. Everbridge serves 9 of the 10 largest U.S. cities, 8 of the 10 largest U.S.-based investment banks, 46 of the 50 busiest North American airports, 6 of the 10 largest global consulting firms, 6 of the 10 largest global automakers, all 4 of the largest global accounting firms, 9 of the 10 largest U.S.-based health care providers, and 5 of the 10


largest U.S.-based health insurers. Everbridge is based in Boston and Los Angeles with additional offices in Lansing, San Francisco, Washington, Beijing, Bangalore, Kolkata, London, Munich, Oslo, Singapore, Stockholm and Tilburg. For more information, visit www.everbridge.com, read the company blog, and follow on LinkedIn, Twitter, and Facebook.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing, non-GAAP research and development, non-GAAP general and administrative, non-GAAP operating expenses, non-GAAP operating income/(loss), non-GAAP net income/(loss), non-GAAP net income/(loss) per share, adjusted EBITDA, and free cash flow.

We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Everbridge’s financial condition and results of operations. We use these non-GAAP measures for financial, operational and budgetary decision-making purposes, to understand and evaluate our core operating performance and trends, and to generate future operating plans. We believe that these non-GAAP financial measures provide useful information regarding past financial performance and future prospects, and permit us to more thoroughly analyze key financial metrics used to make operational decisions. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. We urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures, which are included in this press release, and not to rely on any single financial measure to evaluate our business.

Cautionary Language Concerning Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the anticipated opportunity and trends for growth in our critical communications and enterprise safety applications and our overall business, our market opportunity, our expectations regarding sales of our products, our goal to maintain market leadership and extend the markets in which we compete for customers, and our expected financial results for the fourth quarter of 2019 and the full fiscal year 2019. These forward-looking statements are made as of the date of this press release and were based on current expectations, estimates, forecasts and projections as well as the beliefs and


assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the ability of our products and services to perform as intended and meet our customers’ expectations; our ability to attract new customers and retain and increase sales to existing customers; our ability to increase sales of our Mass Notification application and/or ability to increase sales of our other applications; developments in the market for targeted and contextually relevant critical communications or the associated regulatory environment; our estimates of market opportunity and forecasts of market growth may prove to be inaccurate; we have not been profitable on a consistent basis historically and may not achieve or maintain profitability in the future; the lengthy and unpredictable sales cycles for new customers; nature of our business exposes us to inherent liability risks; our ability to attract, integrate and retain qualified personnel; our ability to successfully integrate businesses and assets that we have acquired or may acquire in the future; our ability to maintain successful relationships with our channel partners and technology partners; our ability to manage our growth effectively; our ability to respond to competitive pressures; potential liability related to privacy and security of personally identifiable information; our ability to protect our intellectual property rights, and the other risks detailed in our risk factors discussed in filings with the U.S. Securities and Exchange Commission (“SEC”), including but not limited to our Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 1, 2019. The forward-looking statements included in this press release represent our views as of the date of this press release. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Media Contact:

Jeff Young

Everbridge

jeff.young@everbridge.com

781-859-4116

Investor Contact:

Garo Toomajanian

ICR

ir@everbridge.com

818-230-9712

All Everbridge products are trademarks of Everbridge, Inc. in the USA and other countries. All other product or company names mentioned are the property of their respective owners.


Consolidated Balance Sheets

(in thousands)

(unaudited)

 

     September 30,
2019
    December 31,
2018
 

Current assets:

    

Cash and cash equivalents

   $ 194,742     $ 59,978  

Restricted cash

     1,026       90  

Short-term investments

     —         45,541  

Accounts receivable, net

     51,824       41,107  

Prepaid expenses

     10,347       4,890  

Deferred costs and other current assets

     10,548       10,909  
  

 

 

   

 

 

 

Total current assets

     268,487       162,515  

Property and equipment, net

     6,029       4,650  

Capitalized software development costs, net

     14,092       12,893  

Goodwill

     90,706       48,382  

Intangible assets, net

     70,624       23,197  

Restricted cash

     3,347       —    

Deferred costs and other assets

     26,423       10,543  
  

 

 

   

 

 

 

Total assets

   $ 479,708     $ 262,180  
  

 

 

   

 

 

 

Current liabilities:

    

Accounts payable

   $ 8,832     $ 2,719  

Accrued payroll and employee related liabilities

     19,674       17,108  

Accrued expenses

     5,481       5,565  

Deferred revenue

     112,058       92,738  

Note payable

     —         427  

Other current liabilities

     6,482       1,490  
  

 

 

   

 

 

 

Total current liabilities

     152,527       120,047  

Long-term liabilities:

    

Deferred revenue, noncurrent

     4,371       2,898  

Convertible senior notes

     97,764       94,097  

Deferred tax liabilities

     1,197       1,032  

Other long term liabilities

     12,751       1,948  
  

 

 

   

 

 

 

Total liabilities

     268,610       220,022  
  

 

 

   

 

 

 

Stockholders’ equity:

    

Common stock

     34       30  

Additional paid-in capital

     404,676       194,866  

Accumulated deficit

     (186,788     (147,670

Accumulated other comprehensive loss

     (6,824     (5,068
  

 

 

   

 

 

 

Total stockholders’ equity

     211,098       42,158  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 479,708     $ 262,180  
  

 

 

   

 

 

 


Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except share and per share data)

(unaudited)

 

     Three months ended
September 30,
    Nine months ended
September 30,
 
     2019     2018     2019     2018  

Revenue

   $ 52,547     $ 38,925     $ 143,771     $ 105,266  

Cost of revenue

     16,454       12,296       45,174       33,488  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     36,093       26,629       98,597       71,778  
     68.69     68.41     68.58     68.19

Operating expenses:

        

Sales and marketing

     21,903       16,348       63,989       51,303  

Research and development

     12,877       10,350       37,164       30,548  

General and administrative

     13,435       7,130       34,457       23,609  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     48,215       33,828       135,610       105,460  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss

     (12,122     (7,199     (37,013     (33,682

Other income (expense), net:

        

Interest and investment income

     1,032       460       3,541       1,316  

Interest expense

     (1,697     (1,592     (4,986     (4,736

Other expense, net

     (35     (33     (129     (237
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense), net

     (700     (1,165     (1,574     (3,657
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (12,822     (8,364     (38,587     (37,339

Income taxes, net

     (99     (86     (531     (371
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (12,921   $ (8,450   $ (39,118   $ (37,710
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss per share attributable to common stockholders:

        

Basic

   $ (0.39   $ (0.29   $ (1.19   $ (1.30

Diluted

   $ (0.39   $ (0.29   $ (1.19   $ (1.30

Weighted-average common shares outstanding:

        

Basic

     33,524,771       29,460,156       32,941,826       28,918,304  

Diluted

     33,524,771       29,460,156       32,941,826       28,918,304  

Other comprehensive income (loss):

        

Foreign currency translation adjustment, net of taxes

     (2,049     81       (1,756     (2,570
  

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive loss

   $ (14,970   $ (8,369   $ (40,874   $ (40,280
  

 

 

   

 

 

   

 

 

   

 

 

 

Stock-based compensation expense included in the above:

 

(in thousands)

 

     Three months ended
September 30,
    Nine months ended
September 30,
 
     2019     2018     2019     2018  

Cost of revenue

   $ 509     $ 312     $ 1,356     $ 1,877  

Sales and marketing

     2,423       1,180       7,338       7,147  

Research and development

     1,732       1,091       5,560       5,606  

General and administrative

     3,637       958       9,840       5,627  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total stock-based compensation

   $ 8,301     $ 3,541     $ 24,094     $ 20,257  
  

 

 

   

 

 

   

 

 

   

 

 

 


Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

     Three months ended
September 30,
    Nine months ended
September 30,
 
     2019     2018     2019     2018  

Cash flows from operating activities:

        

Net loss

   $ (12,921   $ (8,450   $ (39,118   $ (37,710

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

        

Depreciation and amortization

     5,492       3,844       13,192       10,172  

Amortization of deferred costs

     1,879       1,415       5,486       3,928  

Accretion of interest on convertible senior notes

     1,243       1,161       3,667       3,435  

Provision for doubtful accounts and sales reserve

     253       134       642       158  

Stock-based compensation

     8,301       3,495       24,094       20,007  

Other non-cash adjustments

     115       (52     (47     (345

Changes in operating assets and liabilities:

        

Accounts receivable

     (7,018     (4,103     (8,405     1,524  

Prepaid expenses

     (1,683     (428     (5,144     (2,439

Deferred costs

     (4,040     (2,793     (8,438     (6,991

Other assets

     841       (579     924       (1,584

Accounts payable

     3,649       (206     7,318       (113

Accrued payroll and employee related liabilities

     4,838       1,804       1,974       2,109  

Accrued expenses

     423       (1,187     (296     (621

Deferred revenue

     10,850       6,176       12,373       7,237  

Other liabilities

     121       445       632       457  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     12,343       676       8,854       (776
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities:

        

Capital expenditures

     (542     (441     (4,417     (855

Proceeds from landlord reimbursement

     —         —         1,143       —    

Payment for acquisition of business, net of acquired cash

     (51,655     —         (58,419     (35,857

Purchase of short-term investments

     —         (26,777     (1,975     (57,709

Maturities of short-term investments

     3,500       3,424       47,765       74,069  

Additions to intangibles

     —         (16     —         (184

Additions to capitalized software development costs

     (1,918     (2,684     (5,867     (6,722
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (50,615     (26,494     (21,770     (27,258
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities:

        

Restricted stock units withheld to settle employee tax withholding liability

     (4,082     (4,149     (4,531     (7,921

Proceeds from public offering, net of costs

     —         —         139,110       —    

Proceeds from employee stock purchase plan

     1,054       877       2,337       1,758  

Proceeds from stock option exercises

     2,335       2,986       15,822       8,821  

Other

     —         (120     (548     (635
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (693     (406     152,190       2,023  
  

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rates on cash, cash equivalents and restricted cash

     (175     (81     (227     (746
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash, cash equivalents and restricted cash

     (39,140     (26,305     139,047       (26,757

Cash, cash equivalents and restricted cash—beginning of period

     238,255       102,599       60,068       103,051  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash, cash equivalents and restricted cash—end of period

   $ 199,115     $ 76,294     $ 199,115     $ 76,294  
  

 

 

   

 

 

   

 

 

   

 

 

 


Reconciliation of GAAP measures to non-GAAP measures

(in thousands, except share and per share data)

(unaudited)

 

     Three months ended
September 30,
    Nine months ended
September 30,
 
     2019     2018     2019     2018  

Cost of revenue

   $ 16,454     $ 12,296     $ 45,174     $ 33,488  

Amortization of acquired intangibles

     (640     (389     (1,330     (1,022

Stock-based compensation

     (509     (312     (1,356     (1,877
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP cost of revenue

   $ 15,305     $ 11,595     $ 42,488     $ 30,589  

Gross profit

   $ 36,093     $ 26,629     $ 98,597     $ 71,778  

Amortization of acquired intangibles

     640       389       1,330       1,022  

Stock-based compensation

     509       312       1,356       1,877  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP gross profit

   $ 37,242     $ 27,330     $ 101,283     $ 74,677  

Non-GAAP gross margin

     70.87     70.21     70.45     70.94

Sales and marketing

   $ 21,903     $ 16,348     $ 63,989     $ 51,303  

Stock-based compensation

     (2,423     (1,180     (7,338     (7,147
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP sales and marketing

   $ 19,480     $ 15,168     $ 56,651     $ 44,156  

Research and development

   $ 12,877     $ 10,350     $ 37,164     $ 30,548  

Stock-based compensation

     (1,732     (1,091     (5,560     (5,606
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP research and development

   $ 11,145     $ 9,259     $ 31,604     $ 24,942  

General and administrative

   $ 13,435     $ 7,130     $ 34,457     $ 23,609  

Amortization of acquired intangibles

     (2,530     (1,464     (5,082     (3,461

Stock-based compensation

     (3,637     (958     (9,840     (5,627
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP general and administrative

   $ 7,268     $ 4,708     $ 19,535     $ 14,521  

Total operating expenses

   $ 48,215     $ 33,828     $ 135,610     $ 105,460  

Amortization of acquired intangibles

     (2,530     (1,464     (5,082     (3,461

Stock-based compensation

     (7,792     (3,229     (22,738     (18,380
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating expenses

   $ 37,893     $ 29,135     $ 107,790     $ 83,619  

Operating loss

   $ (12,122   $ (7,199   $ (37,013   $ (33,682

Amortization of acquired intangibles

     3,170       1,853       6,412       4,483  

Stock-based compensation

     8,301       3,541       24,094       20,257  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating loss

   $ (651   $ (1,805   $ (6,507   $ (8,942

Net loss

   $ (12,921   $ (8,450   $ (39,118   $ (37,710

Amortization of acquired intangibles

     3,170       1,853       6,412       4,483  

Stock-based compensation

     8,301       3,541       24,094       20,257  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net loss

   $ (1,450   $ (3,056   $ (8,612   $ (12,970
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding, basic and diluted

     33,524,771       29,460,156       32,941,826       28,918,304  

Non-GAAP net loss per share

   $ (0.04   $ (0.10   $ (0.26   $ (0.45

Net loss

   $ (12,921   $ (8,450   $ (39,118   $ (37,710

Interest and investment (income) expense, net

     665       1,132       1,445       3,420  

Income taxes, net

     99       86       531       371  

Depreciation and amortization

     5,492       3,844       13,192       10,172  
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     (6,665     (3,388     (23,950     (23,747

Stock-based compensation

     8,301       3,541       24,094       20,257  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 1,636     $ 153     $ 144     $ (3,490
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) operating activities

   $ 12,343     $ 676     $ 8,854     $ (776

Capital expenditures

     (542     (441     (4,417     (855

Additions to capitalized software development costs

     (1,918     (2,684     (5,867     (6,722
  

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow

   $ 9,883     $ (2,449   $ (1,430   $ (8,353
  

 

 

   

 

 

   

 

 

   

 

 

 


(Continued) Reconciliation of GAAP measures to non-GAAP measures

(in millions, except share and per share data)

(unaudited)

 

     Three months ended
December 31, 2019
    Year ended
December 31, 2019
 
     Low end     High end     Low end     High end  

Business outlook:

        

Net loss

   $ (15.9   $ (15.6   $ (55.0   $ (54.7

Amortization of acquired intangibles

     6.1       6.1       12.5       12.5  

Stock-based compensation

     11.1       11.1       35.2       35.2  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net loss

   $ 1.3     $ 1.6     $ (7.3)     $ (7.0)  

Weighted average common shares outstanding, basic and diluted

     34,000,000       34,000,000       33,000,000       33,000,000  

Net loss per share

   $ (0.47   $ (0.46   $ (1.67   $ (1.66

Non-GAAP net loss per share

   $ 0.04     $ 0.05     $ (0.22   $ (0.21

Net loss

   $ (15.9   $ (15.6   $ (55.0   $ (54.7

Interest (income) expense, net

     0.8       0.8       2.2       2.2  

Income taxes, net

     0.2       0.2       0.7       0.7  

Depreciation and amortization

     8.7       8.7       21.9       21.9  
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     (6.2     (5.9     (30.2     (29.9

Stock-based compensation

     11.1       11.1       35.2       35.2  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 4.9     $ 5.2     $ 5.0     $ 5.3